John Kerans

Converted Organics: Greed, Fear and Greater Fools

Hey Phillip --

COIN must be evaluated for what it is: a development-stage company with a clever business model, a company that has figured out how to make money on garbage.

Thus, for now, before its garbage processing plants are up-n-running, normal metrics do not apply.

Consider this: COIN gets tip fees and municipal tax breaks and low feedstock costs on the front end .. and organic fertilizer (w/no toxic runoff) and carbon credits for sale on the back end.

And, following purchase of a California outfit a few weeks ago, COIN has an apparent lock on the patents that turn organic waste into fertilizer in a week or two.

That's a simple view of the business model, but it indicates good potential for revenue.

Yes, the stock price has benefited from speculation, but many investors .. including gurus like Dennis Gartman .. have concluded that the business model -- as outlined above -- merits consideration.

So, take a look at the story that lies behind the price run-up; there may be more meat on the bone than you give COIN credit for.

I happened on COIN last year, and went long at $3.81, expecting a modest return in a year, maybe two. But there seems to be a growing recognition that this company has much greater potential than I first imagined.

John Kerans
St. Louis USA